'Significant' pay rise for 420,000 people thanks to change in the law

Around 420,000 young workers are set to significantly benefit from employment measures announced by the Government, new research suggests. Announcements such as ensuring all adult workers are paid the same minimum wage rate will start to close the pay gap between workers aged 18-20 and older employees, said the TUC.

The gap will start narrowing, going from £2.84 per hour to £2.21, said the union organisation. Ahead of the Employment Rights Bill reaching its committee stage on Tuesday, the TUC said its analysis showed that young workers aged 16-24 are almost four times more likely to be employed on a zero-hours contract.

TUC general secretary Paul Nowak said: “Hundreds of thousands of young workers are currently suffering a huge pay penalty because of an outdated and discriminatory system. They shouldn’t be getting less for doing the same work as other workers.

“This is something that unions have been campaigning to change for years and the Government is right to tackle this injustice. Labour’s flagship Employment Rights Bill will also help tackle insecure employment something young workers are disproportionally affected by.”

Justin Madders, Minister for Employment Rights, Competition and Markets, said: “A fair day’s work deserves a fair day’s pay and that’s why we’re taking action to boost the pay of younger workers, working in conjunction with business. We’re changing people’s lives for the better because we know that investing in the workforce leads to increased productivity, better resilience and ultimately a stronger economy primed for growth.”

The TUC said its research estimated that 420,000 workers aged 18 to 20 across the UK are set to “significantly benefit” from measures announced by the government.